This Background is intended to provide the basic context of this patent application and is not intended to describe a specific problem to be solved.
Pay-as-you-go or pay-per-use and subscription business models have been used in many areas of commerce, from cellular telephones to commercial launderettes. In developing a pay-as-you go business, a provider, for example, a cellular telephone provider, offers the use of hardware (a cellular telephone) at a lower-than-market cost in exchange for a commitment to remain a subscriber to their network. In this specific example, the customer receives a cellular phone for little or no money in exchange for signing a contract to become a subscriber for a given period of time. Over the course of the contract, the service provider recovers the cost of the hardware by charging the consumer for using the cellular phone.
The pay-as-you-go business model is predicated on the concept that the hardware provided has little or no value, or use, if disconnected from the service provider. To illustrate, should the subscriber mentioned above cease to pay his or her bill, the service provider deactivates their account, and while the cellular telephone may power up, calls cannot be made because the service provider will not allow them. The deactivated phone has no “salvage” value, because the phone will not work elsewhere and the component parts are not easily salvaged nor do they have a significant street value. When the account is brought current, the service provider will reconnect the device to network and allow the subscriber to make calls.
This model works well when the service provider, or other entity taking the financial risk of providing subsidized hardware, has tight control on the use of the hardware and when the device has little salvage value. This business model does not work well when the hardware has substantial uses outside the service provider's span of control. Thus, a typical personal computer does not meet these criteria since a personal computer may have substantial uses beyond an original intent and the components of a personal computer, e.g. a display or disk drive, may have a significant salvage value.
In a typical pay-as-you-go computing system, a user leases or subscribes to an internet service provider (ISP) or other underwriter for a monthly fee which includes a PC and a limited amount of downloaded content. The ISP relies on the user downloading more than the limited amount included in the subscription for profit. However, should the same user subscribe to another ISP or otherwise be able to download content from another ISP, a user may effectively circumvent the original subscription agreement.